Taxi fare payment company Cabcharge Australia Ltd (ASX: CAB) will pay $15 million in penalties and costs related to legal action taken against it by the consumer watchdog.

The Australian Competition and Consumer Commission (ACCC) in June 2009 instituted legal proceedings in the Federal Court, Melbourne against Cabcharge Australia Limited for alleged breaches of the Trade Practices Act 1974 in relation to its conduct in the Australian taxi industry.

It is seeking declarations that Cabcharge's conduct contravened the Act, findings of fact, pecuniary penalties, a compliance program, and costs of the proceeding.

Cabcharge on Friday released a statement saying, "Cabcharge has admitted certain facts only for the purpose of the ACCC proceeding, and consented to the three declarations of contravention of the Trade Practices Act, civil penalties, and compliance orders made in the ACCC proceeding by Justice Finkelstein in the Federal Court in Melbourne today."

"Cabcharge denies and the ACCC is not pursuing any of the other eight allegations of contravention made by the ACCC in the proceeding.

"Cabcharge has agreed not to disclose the contents of its terms of settlement with the ACCC, and will not be commenting further on the facts and three contraventions which have been admitted for the purpose of the ACCC proceeding."